Popular, Inc. Announces Second Quarter Financial Results

 
 

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Popular de Puerto Rico's
Media Relations Team.


  • Reports net income of $597.5 million for the quarter, reflecting the impact of the partial reversal of the valuation allowance of the deferred tax asset from its U.S. operations of $544.9 million
  • Adjusted net income of $90.1 million, compared to an adjusted net income of $90.3 million for the previous quarter
  • Net interest margin of 4.54% in Q2 2015 vs. 4.57% in Q1 2015
  • Credit Quality (excluding covered loans):
    • Non-performing loans held-in-portfolio (NPLs) decreased by $89.0 million from Q1 2015; NPL’s to loans ratio at 2.6% vs. 3.2% in Q1 2015;
    • Net charge-offs (NCOs) were 0.89% of average loans held-in-portfolio vs. 0.72% in Q1 2015; NCOs increased by $10.6 million quarter over quarter;
    • Allowance for loan losses of $512.7 million vs. $516.2 million in Q1 2015; Allowance for loan losses to loans held-in-portfolio at 2.29% vs. 2.46% in Q1 2015;
    • Allowance for loan losses to NPLs at 89.02% vs. 77.63% in Q1 2015.
  • Common Equity Tier 1 ratio of 15.61% and Tangible Book Value per Share of $41.75 at June 30, 2015
Friday, July 24, 2015 8:00 am EDT

Dateline:

SAN JUAN, Puerto Rico

Public Company Information:

NASDAQ:
BPOP
PR7331741061

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Popular, Inc. (the “Corporation” or “Popular”) (NASDAQ:BPOP) reported net income of $597.5 million and adjusted net income of $90.1 million for the quarter ended June 30, 2015, compared to net income of $74.8 million and an adjusted net income of $90.3 million for the quarter ended March 31, 2015.

Mr. Richard L. Carrión, Chairman of the Board and Chief Executive Officer, said, "Despite a difficult operating environment in our home market, we are pleased to report stable credit metrics and earnings results. We are also encouraged by recent organic growth in our US business as well as the successful integration of the Doral transactions and the continued strength of our Puerto Rico franchise."

         
Earnings Highlights
 
(Unaudited)   Quarters ended Six months ended
(Dollars in thousands, except per share information)   30-Jun-15   31-Mar-15   30-Jun-14 30-Jun-15   30-Jun-14
Net interest income (expense) $362,553 $343,195 $(59,381 ) $705,748 $291,790
Provision for loan losses – non-covered loans 60,468 29,711 50,074 90,179 104,196
Provision for loan losses – covered loans [1]   15,766     10,324   11,604   26,090     37,318  
Net interest income (expense) after provision for loan losses 286,319 303,160 (121,059 ) 589,479 150,276
FDIC loss share income (expense) 19,075 4,139 (55,261 ) 23,214 (79,467 )
Other non-interest income 121,684 111,096 118,050 232,780 238,288
Operating expenses   363,174     312,342   275,439   675,515     553,038  
Income (loss) from continuing operations before income tax 63,904 106,053 (333,709 ) 169,958 (243,941 )
Income tax (benefit) expense   (533,533 )   32,568   (4,124 ) (500,964 )   19,140  
Income (loss) from continuing operations   597,437     73,485   (329,585 ) 670,922     (263,081 )
Income (loss) from discontinued operations, net of tax   15     1,341   (181,729 ) 1,356     (161,824 )
Net income (loss)   $597,452     $74,826   $(511,314 ) $672,278     $(424,905 )
Net income (loss) applicable to common stock   $596,521     $73,896   $(512,245 ) $670,417     $(426,767 )
Net income (loss) per common share from continuing operations - Basic   $5.80     $0.71   $(3.21 ) $6.51     $(2.58 )
Net income (loss) per common share from continuing operations - Diluted   $5.79     $0.71   $(3.21 ) $6.49     $(2.58 )
Net income (loss) per common share from discontinued operations - Basic   -     $0.01   $(1.77 ) $0.01     $(1.57 )
Net income (loss) per common share from discontinued operations - Diluted   -     $0.01   $(1.77 ) $0.01     $(1.57 )
 
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under an FDIC loss sharing agreement.
 

Significant Events

  • During the quarter ended June 30, 2015, the Corporation recorded a partial reversal of the valuation allowance on its deferred tax assets from its U.S. operations for approximately $544.9 million. The Corporation has concluded that it is more likely than not that a portion of the total of $1.2 billion on deferred tax assets at the U.S. operations, comprised mainly of net operating losses (“NOLs”) will be realized. The Corporation based its determination on its estimated earnings for the remaining carryforward period – eighteen years beginning with the 2016 fiscal year – available to utilize the deferred tax asset to reduce its income tax obligations.

The increase in the net deferred tax asset did not have a material impact on regulatory capital. However, it increased the tangible book value per common share by $5.27.

  • The shared-loss arrangement under the commercial loss share agreement with the FDIC related to the loans acquired from Westernbank as part of the FDIC assisted transaction in 2010 expired on June 30, 2015. Accordingly, approximately $1.5 billion in loans and $15.3 million in OREOs have been reclassified as “non-covered” in the accompanying statement of financial condition as of June 30, 2015, because they are no longer subject to the shared-loss payments by the FDIC. However, included in these balances are approximately $248.7 million of loans that are subject to the resolution of several arbitration proceedings currently ongoing with the FDIC related primarily to (i) the FDIC’s denial of reimbursements for certain charge-offs claimed by BPPR with respect to certain loans and the treatment of those loans as “shared-loss assets” under the commercial loss share agreement; and (ii) the denial by the FDIC of portfolio sale proposals submitted by BPPR pursuant to the applicable commercial shared loss agreement provision governing portfolio sales. Until the disputes described above are finally resolved, the terms of the commercial loss share agreement will remain in effect with respect to any such items under dispute. As of June 30, 2015, losses amounting to $141.3 million related to these assets are reflected in the FDIC indemnification asset as a receivable from the FDIC.
  • During the second quarter of 2015, BPPR completed the acquisition of mortgage servicing rights on three pools of residential mortgage loans serviced for Ginnie Mae, Fannie Mae and Freddie Mac, with an unpaid principal balance of approximately $5.0 billion, from the FDIC as a receiver for Doral Bank, together with the acquisition of certain assets and all deposits (other than certain brokered deposits) from Doral Bank on February 27, 2015, (the “Doral Acquisition”). The aggregate purchase price for the mortgage servicing rights and related servicing advances was approximately $56.2 million.

The following tables reflect the results of operations for the second and first quarters of 2015, with adjustments to exclude the impact of significant events.

    Quarter ended
(Unaudited)   30-Jun-15
(In thousands)  

Actual Results (US GAAP)

  BPNA Reorganization [2]   Doral Acquisition [3]   OTTI [4]   Reversal DTA - BPNA [5]   Loss on Bulk Sale of Covered OREOs [6]   Adjustment to FDIC Indemnification Asset [7]   Adjusted Results (Non-GAAP)
Net interest income $362,553   $-   $-   $-   $-   $-   $-   $362,553
Provision for loan losses – non-covered loans 60,468 - - - - - - 60,468
Provision for loan losses – covered loans [1]   15,766     -     -     -     -     -     -     15,766
Net interest income after provision for loan losses 286,319 - - - - - - 286,319
Net (loss) and valuation adjustments on investment securities (14,440 ) - - (14,445 ) - - - 5
FDIC loss share income 19,075 - - - - 17,566 (10,887 ) 12,396
Other non-interest income   136,124     -     961     -     -     -     -     135,163
Total non-interest income   140,759     -     961     (14,445 )   -     17,566     (10,887 )   147,564
Personnel costs 120,977 - 3,865 - - - - 117,112
Net occupancy expenses 23,286 - 2,309 - - - - 20,977
Equipment expenses 15,925 - 725 - - - - 15,200
Professional fees 78,449 - 4,885 - - - - 73,564
Communications 6,153 - 70 - - - - 6,083
Business promotion 13,776 - 401 - - - - 13,375
Other real estate owned (OREO) expenses 44,816 - - - - 21,957 - 22,859
Restructuring costs 6,174 6,174 - - - - - -
Other operating expenses   53,618     -     509     -     -     -     -     53,109
Total operating expenses   363,174     6,174     12,764     -     -     21,957     -     322,279
Income from continuing operations before income tax 63,904 (6,174 ) (11,803 ) (14,445 ) - (4,391 ) (10,887 ) 111,604
Income tax (benefit) expense   (533,533 )   -     (3,744 )   (2,486 )   (544,927 )   (1,712 )   (2,177 )   21,513
Income from continuing operations   $597,437     $(6,174 )   $(8,059 )   $(11,959 )   $544,927     $(2,679 )   $(8,710 )   $90,091
Income from discontinued operations, net of tax   $15     $15     $-     $-     $-     $-     $-     $-
Net income   $597,452     $(6,159 )   $(8,059 )   $(11,959 )   $544,927     $(2,679 )   $(8,710 )   $90,091
 
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under an FDIC loss sharing agreement.
 
[2] Represents restructuring charges associated with the reorganization of BPNA.
 

[3] Includes approximately $1.0 million of fees charged for services provided to the alliance co-bidders, including loan servicing and other interim services, personnel costs related to former Doral Bank employees retained on a temporary basis and incentive compensation for an aggregate of $3.9 million, building rent expense of Doral Bank’s administrative offices for $2.3 million, professional fees and business promotion expenses directly associated with the Doral Acquisition and systems conversion for $5.3 million and other expenses, including equipment and communications, of $1.3 million.

 
[4] Represents an other than temporary impairment (“OTTI”) recorded on Puerto Rico government investment securities available- for- sale. These securities had an amortized cost of approximately $41.1 million and a market value of $26.6 million. Based on the fiscal and economic situation in Puerto Rico, together with the government’s recent announcements regarding its ability to pay its debt, the Corporation determined that the unrealized loss, a portion of which had been in an unrealized loss for a period exceeding twelve months, was other than temporary.
 
[5] Represents the partial reversal of the valuation allowance of a portion of the deferred tax asset amounting to approximately $1.2 billion, at the U.S. operations. Refer to additional details on the Income Taxes section of this earnings release.
 
[6] Represents the loss on a bulk sale of covered OREOs completed in the second quarter and the related mirror accounting of the 80% reimbursable from the FDIC.
 

[7] The quarter’s negative amortization of the FDIC’s Indemnification Asset included a $10.9 million expense related to losses incurred by the corporation that were not claimed to the FDIC before the expiration of the loss-share portion of the agreement on June 30, 2015, and that are not subject to the ongoing arbitrations.

 
    Quarter ended
(Unaudited)   31-Mar-15
(In thousands)   Actual Results (US GAAP)   BPNA Reorganization [2]   Doral Acquisition [3]   Adjusted Results (Non-GAAP)
Net interest income $343,195   $-   $-   $343,195
Provision for loan losses – non-covered loans 29,711 - - 29,711
Provision for loan losses – covered loans [1]   10,324   -     -     10,324
Net interest income after provision for loan losses 303,160 - - 303,160
FDIC loss share income 4,139 - - 4,139
Other non-interest income   111,096   -     1,121     109,975
Total non-interest income   115,235   -     1,121     114,114
Personnel costs 116,458 - 2,432 114,026
Net occupancy expenses 21,709 - 643 21,066
Equipment expenses 13,411 - - 13,411
Professional fees 75,528 - 6,997 68,531
Communications 6,176 - - 6,176
Business promotion 10,813 - - 10,813
Other real estate owned (OREO) expenses 23,069 - - 23,069
Restructuring costs 10,753 10,753 - -
Other operating expenses   34,425   -     -     34,425
Total operating expenses   312,342   10,753     10,072     291,517
Income from continuing operations before income tax 106,053 (10,753 ) (8,951 ) 125,757
Income tax expense   32,568   -     (2,896 )   35,464
Income from continuing operations   $73,485   $(10,753 )   $(6,055 )   $90,293
Income from discontinued operations, net of tax   $1,341   $1,341     $-     $-
Net income   $74,826   $(9,412 )   $(6,055 )   $90,293
 
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under an FDIC loss sharing agreement.
 
[2] Represents restructuring charges associated with the reorganization of BPNA.
 

[3] Includes $1.1 million of fees charged for services provided to the alliance co-bidders, including loan servicing and other interim services, personnel costs related to former Doral Bank employees retained on a temporary basis and incentive compensation for an aggregate of $2.4 million, building rent expense of Doral Bank’s administrative offices for $0.6 million and professional and legal fees directly associated with the Doral Bank acquisition for $7.0 million.

 
 
    Quarters ended
(Unaudited) Adjusted Results Non-GAAP  
(In thousands)   30-Jun-15   31-Mar-15   Variance
Net interest income $362,553   $343,195 $19,358
Provision for loan losses – non-covered loans 60,468 29,711 30,757
Provision for loan losses – covered loans [1]   15,766   10,324   5,442  
Net interest income after provision for loan losses 286,319 303,160 (16,841 )
Net (loss) and valuation adjustments on investment securities 5 - 5
FDIC loss share income (expense) 12,396 4,139 8,257
Other non-interest income   135,163   109,975   25,188  
Total non-interest income   147,564   114,114   33,450  
Personnel costs 117,112 114,026 3,086
Net occupancy expenses 20,977 21,066 (89 )
Equipment expenses 15,200 13,411 1,789
Professional fees 73,564 68,531 5,033
Communications 6,083 6,176 (93 )
Business promotion 13,375 10,813 2,562
Other real estate owned (OREO) expenses 22,859 23,069 (210 )
Other operating expenses   53,109   34,425   18,684  
Total operating expenses   322,279   291,517   30,762  
Income from continuing operations before income tax 111,604 125,757 (14,153 )
Income tax expense   21,513   35,464   (13,951 )
Income from continuing operations   $90,091   $90,293   $(202 )
Net income   $90,091   $90,293   $(202 )
 
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under an FDIC loss sharing agreement.
 

Net interest income

  • For the quarter ended June 30, 2015, the Corporation had net interest income of $362.6 million, compared to net interest income of $343.2 million for the previous quarter. The net interest margin was 4.54%, slightly lower compared to the previous quarter’s net interest margin of 4.57%. The investment portfolio’s asset mix and increase in low rate overnight investments drove the lower net interest margin for the quarter. The impact of having one more day in the quarter ended June 30, 2015 resulted in an increase of approximately $2.5 million in net interest income when compared to the previous quarter.
  • The Doral Acquisition added approximately $27.1 million in net interest income for the second quarter of 2015, compared to $9.8 million for the previous quarter, an increase that resulted from a full quarter of activity versus one month in the first quarter following the acquisition. This portfolio contributed an approximate 9 basis points to the Corporation’s overall margin in the quarter primarily driven by $1.8 billion in average earning assets with a yield of 6.40%.

The increase of $19.4 million in the net interest income is mainly related to:

  • An increase in income from mortgage loans of $7.5 million, or 11 basis points, mostly due to higher average volume from the Doral Acquisition and higher yields mainly in the PR segment.
  • An increase in income from commercial loans of $7.1 million, or 5 basis points, due mainly to higher average volume and yields from loans from the Doral Acquisition and loan growth reflected at the BPNA segment.
  • Higher interest income from construction loans by $4.1 million, or 35 basis points, due to higher average volume related to loans from the Doral Acquisition in the U.S.

These positive variances in net interest income were offset in part by:

  • A decrease of $2.1 million, or 30 basis points, of income from covered loans due to a lower volume of loans as part of the normal portfolio run-off, partially offset by higher yields reflecting the impact of the quarterly recast process. Refer to Table O for a schedule of the accretable yield for covered loans accounted for under ASC 310-30.

BPPR’s net interest income amounted to $316.1 million for the quarter ended June 30, 2015, compared with $306.6 million for the previous quarter. The increase in net interest income was mainly due to higher average volume of interest earning assets from the Doral Acquisition, an increase in mortgage backed securities and higher yields on mortgage loans. This increase was partially offset by lower income from covered loans as part of the portfolio run-off. Net interest margin for the quarter was 4.92%, a decrease of 8 basis points from the previous quarter. The decline in yield was attributed to lower yields mostly related to the investment portfolio’s asset mix. Cost of interest bearing deposits in Puerto Rico was relatively flat at 52 basis points.

BPNA’s net interest income was $61.9 million, compared with $52.1 million for the previous quarter. The increase in the net interest income is mainly driven by commercial and construction loan origination as well as the impact of the Doral Acquisition. The contribution from the Doral Acquisition to BPNA’s net interest income was $14.6 million. Net interest margin was 4.03%, compared to 3.82% for the previous quarter, an increase of 21 basis points mostly due to a lower cost of interest bearing deposits by 11 basis points and higher yield from commercial loans.

Non-interest income

Non-interest income was $140.8 million for the second quarter of 2015, an increase of $25.5 million when compared with the first quarter of 2015. Excluding the impact of the significant events detailed in the Adjusted Results (Non-GAAP) tables above, non-interest income increased by $33.5 million when compared to the first quarter of 2015, driven primarily by the following:

  • Higher mortgage banking activities income by $8.5 million mainly due to higher mortgage servicing fees by $2.4 million, a favorable variance in the valuation adjustment on mortgage servicing rights of $3.0 million, and a favorable variance of $2.3 million in the realized gains of closed derivatives positions at the BPPR segment. Refer to Table F for additional details on mortgage banking activities.
  • Higher other service fees by $5.8 million mostly due to higher insurance revenues driven by an increase in contingent fees, renewals and business production, as well as the acquisition of the Doral Insurance Agency portfolio during the second quarter of 2015 as part of a separate bidding process, after Doral Financial Corporation filed for bankruptcy. Higher credit card fees due to a higher volume of transactions at the BPPR segment also contributed to the improvement. Refer to Table F for a breakdown of other service fees.
  • Favorable variance in adjustments to indemnity reserves by $4.9 million mostly due to lower provision for recourse and representations and warranties reserves for loans previously sold.
  • Favorable variance in the FDIC loss-share expense by $8.3 million, excluding the impact of $17.6 million in mirror accounting for reimbursable expenses related to the bulk sale of OREO and the $10.9 million adjustment to the FDIC indemnification asset, driven by lower amortization of the indemnification asset by $7.1 million. See additional details about covered portfolio and FDIC indemnity asset in Table O.
  • Positive variance in other operating income by $7.6 million mainly due to higher aggregated net earnings from investments accounted under the equity method by $5.2 million and a contingent payment adjustment of $1.2 million related to the sale of a portfolio of the Popular’s Insurance Agency business to a third party during the second quarter of 2012.

The results for the second quarter of 2015 include an other than temporary impairment charge on its portfolio of Puerto Rico government investment securities available-for-sale of $14.4 million. These securities had an amortized cost of approximately $41.1 million and a market value of $26.6 million. Based on the fiscal and economic situation in Puerto Rico, together with the government’s recent announcements regarding its ability to pay its debt, the Corporation determined that the unrealized loss, a portion of which had been in an unrealized loss for a period exceeding twelve months, was other than temporary.

Refer to Table B for further details.

     
Financial Impact of FDIC-Assisted Transaction
(Unaudited)   Quarters ended
(In thousands)   30-Jun-15   31-Mar-15   30-Jun-14
 

Income Statement

Interest income on covered loans $55,335 $57,431 $82,975
Total FDIC loss share income (expense) 19,074 4,139 (55,261 )
Provision for loan losses   15,766   10,324   11,604  
Total revenues less provision for loan losses   $58,643   $51,246   $16,110  
 

Balance Sheet

Loans covered under loss-sharing agreements with FDIC $689,650 $2,456,552 $2,736,102
FDIC loss share asset 392,947 409,844 751,553
FDIC true-up payment obligation   121,469   125,140   127,551  
 

See additional details on accounting for FDIC-Assisted transaction in Table O.

Operating expenses

Operating expenses increased by $50.8 million when compared with the first quarter of 2015. Excluding the impact of the significant events detailed in the Adjusted Results (Non-GAAP) tables above, operating expenses increased by $30.8 million compared to the first quarter of 2015, driven primarily by:

  • Higher other operating expenses by $12.3 million, mainly due to property tax payments at BPPR by $6.0 million, most of which was related to loss sharing expenses reimbursable by the FDIC. These payments were made under a general amnesty provision provided by the government. Also, there was a higher provision for unused commitments at BPPR by $3.5 million.
  • Higher professional fees by $5.0 million, mainly due to legal expenses related to the FDIC arbitration proceedings and higher appraisal and collection expenses for the covered loans portfolio.
  • Higher personnel cost by $3.1 million, mainly due to an increase in share based compensation by $5.6 million attributed to the accounting treatment of awards granted during the quarter, higher incentive at BPNA and a full quarter’s expenses of the Doral Acquisition’s retained employees; partially offset by a decrease in the reserve for hospital and life insurance at BPPR.
  • Higher business promotion by $2.6 million, mainly due to higher advertising and credit cards reward program expense at BPPR.
  • Higher equipment expenses by $1.8 million, mainly due to higher software maintenance expense at BPPR.
  • Higher other operating taxes by $2.5 million, mainly due to higher municipal tax, attributed to the prior quarter's release of reserves for settled tax disputes.
  • Higher FDIC deposit insurance by $2.1 million, mainly due to higher asset balances and composition attributed in part to the Doral Acquisition.

Non-personnel credit-related costs, which include collections, appraisals, credit related fees, and OREO expenses, amounted to $52.5 million for the second quarter of 2015, compared with $29.0 million for the first quarter of 2015. The increase was principally due to the loss on the bulk sale of covered OREO at BPPR. Excluding the impact on the sale, the increase of $1.6 million was mainly due to write-downs of OREO.

Full-time equivalent employees, including discontinued operations, were 7,980 as of June 30, 2015, compared with 8,203 as of March 31, 2015, and 8,032 as of June 30, 2014.

For a breakdown of operating expenses by category refer to table B.

Income taxes

For the quarter ended June 30, 2015, the Corporation recorded an income tax benefit of $533.5 million, compared to an income tax expense of $32.6 million for the previous quarter. On an adjusted basis, the income tax expense for the second quarter of 2015 was of $21.5 million, compared to $35.5 million for the previous quarter.

During the quarter ended June 30, 2015, the Corporation recorded a partial reversal of the valuation allowance on its deferred tax assets from the U.S. operations for approximately $544.9 million. The Corporation concluded that it is more likely than not that a portion of the total of $1.2 billion on deferred tax assets at the U.S. operations, comprised mainly of net operating losses (“NOLs”) will be realized. The Corporation based its determination on its estimated earnings for the remaining carryforward period – eighteen years beginning with the 2016 fiscal year – available to utilize the deferred tax asset to reduce its income tax obligations.

The recent historical level of book income adjusted by permanent differences, together with the estimated earnings after the reorganization of the U.S. operations and additional estimated earnings from the Doral Acquisition were objective positive evidence considered by the Corporation. As of June 30, 2015, the U.S. operations are not in a three year cumulative loss position, taking into account taxable income, exclusive of reversing temporary differences (“adjusted book income”). An evaluation of the realization of the deferred tax asset will continue to be performed each quarter.

The increase in the net deferred tax asset did not have a material impact on regulatory capital. However, it increased the tangible book value per common share by $5.27.

The effective income tax rate for the second quarter of 2015, on an adjusted basis, was 19%, compared to 28% for the previous quarter. The decrease in the effective tax rate was driven by the composition and source of taxable income for the quarter. The impact of the reversal of the valuation allowance for the 2015 fiscal year is reflected in the effective tax rate of this year, effectively reducing the income tax expense by the benefit of the reversal each quarter of this year.

As discussed above, the effective tax rate is impacted by the composition and source of the taxable income. In 2016, the Corporation expects that the effective tax rate for the U.S. operations will be approximate 44%. Adjusting to an effective tax rate of 44% for the U.S. operations, and assuming the same earnings composition of this quarter, the adjusted effective income tax rate for the Corporation’s consolidated results for the second quarter of 2015 would have been 26%.

Credit Quality

As noted in the Significant Events section of this press release, the shared-loss arrangement under the commercial loss share agreement with the FDIC related to the loans acquired from Westernbank as part of the FDIC assisted transaction in 2010 expired on June 30, 2015. Accordingly, approximately $1.5 billion in loans and $15.3 million in OREO’s have been reclassified as “non-covered” in the accompanying statement of financial condition as of June 30, 2015, because they are no longer subject to the shared-loss payments by the FDIC. However, included in these balances are approximately $248.7 million of loans that are subject to the resolution of several arbitration proceedings currently ongoing with the FDIC related primarily to (i) the FDIC’s denial of reimbursements for certain charge-offs claimed by BPPR with respect to certain loans and the treatment of those loans as “shared-loss assets” under the commercial loss share agreement; and (ii) the denial by the FDIC of portfolio sale proposals submitted by BPPR pursuant to the applicable commercial shared loss agreement provision governing portfolio sales. Until the disputes described above are finally resolved, the terms of the commercial loss share agreement will remain in effect with respect to any such items under dispute. As of June 30, 2015, losses amounting to $141.3 million related to these assets are reflected in the FDIC indemnification asset as a receivable from the FDIC.

Loans and OREO’s that remain covered under the terms of the single-family loss share agreement continue to be presented as covered assets in the accompanying tables and credit metrics as of June 30, 2015.

The reclassification to non-covered of the non-single family loans and foreclosed assets that were previously covered under the shared-loss arrangement with the FDIC, a bulk sale of covered OREO’s, and the impact of the classification to held-for-sale of certain non-performing loans as detailed below, impacted credit metrics for the second quarter of 2015. Excluding the effect of these events, the underlying credit quality of the loan portfolios remained generally stable, in spite of the challenging economic conditions that persist in Puerto Rico. The Corporation continued to pursue strategic opportunities intended to reduce non-performing assets and continue improving the overall risk profile of its loan portfolios.

The following table presents non-performing assets information:

Non-Performing Assets
     
(Unaudited)
(In thousands)   30-Jun-15   31-Mar-15   30-Jun-14
Total non-performing loans held-in-portfolio, excluding covered loans $575,997 $664,953 $639,735
Non-performing loans held-for-sale 50,875 8,404 4,426
Other real estate owned (“OREO”), excluding covered OREO   142,255     128,170     139,420  
Total non-performing assets, excluding covered assets 769,127 801,527 783,581
Covered loans and OREO   37,367     133,211     171,955  
Total non-performing assets   $806,494     $934,738     $955,536  
Net charge-offs for the quarter (excluding covered loans)   $46,442     $35,886     $46,201  
 
 
Ratios (excluding covered loans):
Non-covered loans held-in-portfolio $22,435,145 $21,012,930 $19,635,224
Non-performing loans held-in-portfolio to loans held-in-portfolio 2.57 % 3.16 % 3.26 %
Allowance for loan losses to loans held-in-portfolio 2.29 2.46 2.68
Allowance for loan losses to non-performing loans, excluding loans held-for-sale   89.02     77.63     82.26  
 
Refer to Table H for additional information.
 
Provision for Loan Losses
         
(Unaudited)   Quarters ended Six months ended
(In thousands)   30-Jun-15   31-Mar-15   30-Jun-14 30-Jun-15   30-Jun-14
Provision (reversal) for loan losses - non-covered loans:
BPPR $60,529 $31,913 $74,860 $92,442 $128,775
BPNA   (61 )   (2,202 )   (24,786 ) (2,263 )   (24,579 )
Total provision for loan losses - non-covered loans   60,468     29,711     50,074   90,179     104,196  
Provision for loan losses - covered loans   15,766     10,324     11,604   26,090     37,318  
Total provision for loan losses   $76,234     $40,035     $61,678   $116,269     $141,514  
 

The following presents credit quality performance for the second quarter of 2015 for the Corporation’s non-covered portfolios, including loans transferred from covered to non-covered status upon the expiration of the shared-loss arrangement under the commercial loss share agreement with the FDIC.

  • Inflows of NPLs held-in-portfolio, excluding consumer loans and NPLs reclassified from covered loans, decreased by $30.5 million from the first quarter of 2015, mainly driven by lower commercial and mortgage inflows of $16.6 million and $16.2 million, respectively.
  • Non-performing loans held-in-portfolio decreased by $89.0 million during the quarter ended June 30, 2015, mainly driven by lower commercial NPLs of $84.1 million. During the quarter, the Corporation agreed to sell a $75.0 million non-accrual public sector credit and accordingly transferred it to held-for-sale. The aggregate write-down on loans transferred to held-for-sale during the quarter was of approximately $30.5 million, of which $29.0 million was previously reserved. Included in the second quarter of 2015 were $8.2 million of NPLs no longer covered by FDIC loss share agreement. At June 30, 2015, NPLs represented 2.6% of total loans held-in-portfolio, compared to 3.2% in March 31, 2015.
  • Excluding the $30.5 million write-down related to the loans transferred to held-for-sale, net charge-offs totaled $46.4 million, or an annualized 0.89% of average non-covered loans held-in-portfolio in the second quarter of 2015, compared to $35.9 million, or 0.72%, in the first quarter of 2015. The increase of $10.5 million was primarily driven by higher commercial and construction net charge-offs of $11.9 million and $4.6 million, respectively, mostly in the BPPR segment, as the prior quarter reflected lower losses, including the effect of higher recoveries. This increase was partially offset by a $5.0 million recovery associated with a sale of a portfolio of previously charged-off credit cards and auto loans in the BPPR segment. Refer to Table J for further information on net charge-offs and related ratios.
  • The allowance for loan losses amounted to $512.7 million, decreasing by $3.5 million from the first quarter of 2015. The allowance for loan losses for the second quarter includes $13.0 million transferred from covered to non-covered loans and a $29.0 million write-down from loans transferred to held-for-sale. Excluding these effects, the allowance for loan losses increased by $12.5 million from the first quarter of 2015. The general and specific reserves related to non-covered loans totaled $373.7 million and $139.0 million, respectively, at quarter-end, compared with $377.2 million and $139.0 million, respectively, as of March 31, 2015. The ratio of the allowance for loan losses to loans held-in-portfolio decreased to 2.29% in the second quarter of 2015, compared to 2.46% in the previous quarter, in part due to the impact of the loans reclassified from the covered portfolio on the total loan base. Excluding loans reclassified to “non-covered” at June 30, 2015, and related ALLL, the allowance to loans ratio was 2.39%.
  • The ratio of the allowance for loan losses to NPLs held-in-portfolio stood at 89.0%, compared to 77.6% in the previous quarter.
  • The provision for loan losses of $60.5 million in the second quarter of 2015 increased by $30.8 million mainly driven by higher NCO activity and ASC 310-10 reserves for commercial loans. The $30.5 million write-down to move portfolio loans to held-for-sale had minimal impact on the provision for the quarter as it had been reserved in previous quarters. The provision for the second quarter of 2015 represented 130.2% of net charge-offs, compared to 82.8% in the first quarter of 2015.
     
Credit Quality by Segment
 
(Unaudited)
(In thousands)   Quarters ended
BPPR   30-Jun-15   31-Mar-15   30-Jun-14
Provision for loan losses $60,529 $31,913 $74,860
Net charge-offs 45,146 36,772 43,335
Total non-performing loans held-in-portfolio, excluding covered loans 541,767 638,017 573,806
Allowance / non-covered loans held-in-portfolio   2.69 %   2.92 %   2.94 %
 
    Quarters ended
BPNA   30-Jun-15   31-Mar-15   30-Jun-14
Provision for loan losses (reversal of provision) $(61 ) $(2,202 ) $(24,786 )
Net charge-offs (recoveries) 1,296 (886 ) 2,866
Total non-performing loans held-in-portfolio 34,230 26,936 65,929
Allowance / non-covered loans held-in-portfolio   0.66 %   0.72 %   1.59 %
 

BPPR Segment

  • Inflows of NPLs held-in-portfolio, excluding consumer loans and NPLs reclassified from covered NPLs, decreased by $32.6 million from the first quarter of 2015, mostly driven by lower mortgage and commercial inflows of $21.8 million and $10.3 million, respectively. Mortgage NPL inflows of the first quarter of 2015 included the addition of $16.6 million of loans previously serviced by Doral Bank. Excluding this impact from the previous quarter, mortgage NPL inflows improved by $5.2 million.
  • Total non-performing loans held-in-portfolio decreased by $96.3 million from the first quarter of 2015, driven by lower commercial NPLs of $85.2 million due to the above mentioned $75.0 million public sector borrower and higher NCO activity. Included in the second quarter of 2015 were $8.2 million in NPLs no longer covered by the FDIC loss share agreement. At June 30, 2015, NPLs to total loans held-in-portfolio was 3.0% compared to 3.8% in the first quarter of 2015.
  • Excluding the $30.0 million write-down related to the loans transferred to held-for-sale discussed above, net charge-offs were $45.1 million, increasing by $8.4 million from the first quarter of 2015, primarily reflective of higher commercial and construction NCOs of $12.3 million and $4.6 million, respectively, as the prior quarter NCOs were lower than the loss trend, due in part to higher recoveries. This increase was in part offset by lower consumer NCOs of $9.0 million, which included a $5.0 million recovery related to the sale of previously charged-off consumer portfolios, as noted above. The ratio of net charge-offs to average loans held-in-portfolio increased to 1.10% on an annualized basis from 0.92% in the previous quarter.
  • Exclusive of the $13.0 million allowance transferred from covered loans, the allowance for loan losses was $469.7 million, a decrease of $14.6 million from the first quarter of 2015. The allowance for loan losses to loans held-in-portfolio was 2.9%, unchanged from the previous quarter. The decrease in the allowance was driven by a $29.0 million reserve release in connection with the loans transferred to held-for-sale specifically reserved in prior quarters, coupled with a slight reduction in the general reserve component, offset in part by higher ASC 310-10 reserves for commercial loans. The ratio of the allowance for loan losses to NPLs held-in-portfolio stood at 88.0%, compared to 75.9% in the previous quarter. Including the impact of FDIC loans transferred to non-covered category, ALLL to NPLs ratio was 89.1%.
  • The provision for loan losses for the second quarter of 2015 amounted to $60.5 million, increasing by $28.6 million from the previous quarter predominantly driven by the aforementioned increase in NCO activity and ASC 310-10 reserves for commercial loans. The provision for the second quarter represented 131.9% of net charge-offs compared to 86.8% in the first quarter of 2015.

BPNA Segment

  • Total NPLs held-in-portfolio increased by $7.3 million, primarily related to higher mortgage and legacy NPLs of $3.6 million and $2.4 million, respectively. NPL to total loans held-in-portfolio was 0.76%, compared to 0.61% in the first quarter of 2015.
  • Net charge-offs, excluding write-downs, amounted to $1.3 million, compared to net recoveries of $886 thousand in the first quarter of 2015. This increase was mainly driven by lower recoveries during the second quarter of 2015. The ratio of net charge-offs to average loans held-in-portfolio was 12 basis points on an annualized basis, compared to a recovery of 9 basis points in the previous quarter.
  • The allowance for loan losses decreased slightly to $30.0 million from $31.9 million in the previous quarter. The allowance for loan losses as a percentage of loans held-in-portfolio decreased to 0.66% from 0.72% in the previous quarter. The ratio of allowance for loan losses to NPLs held-in-portfolio stood at 87.8%, compared to 118.6% in the previous quarter.
  • The provision for loan losses in the second quarter of 2015 amounted to a provision release of $61 thousand, reflective of strong credit quality and low level of charge-offs.
 

 

 

 

 

Financial Condition Highlights

 
(Unaudited)    
(In thousands)   30-Jun-15   31-Mar-15   30-Jun-14
Money market, trading and investment securities $9,248,978 $8,254,845 $7,949,164
Loans not covered under loss sharing agreements with the FDIC 22,435,145 21,012,930 19,635,224
Loans covered under loss sharing agreements with the FDIC 689,650 2,456,552 2,736,102
Assets from discontinued operations - - 1,828,382
Total assets 36,750,113 35,624,840 36,587,902
Deposits 27,750,694 27,273,689 24,901,152
Borrowings 3,026,472 2,891,156 4,465,965
Liabilities from discontinued operations 1,754 1,930 2,079,742
Total liabilities 31,800,460 31,247,720 32,327,461
Stockholders’ equity   4,949,653   4,377,120   4,260,441
 

Total assets increased by $1.1 billion from the first quarter of 2015. The reclassification to non-covered of the non-single family loans and foreclosed assets that were previously covered under the shared-loss arrangement of the commercial loss share agreement that expired on June 30, 2015, impacted the variance in quarter over quarter loan and foreclosed asset balances. Excluding the reclassification of $1.5 billion of loans formerly covered under loss sharing agreements, loans held in portfolio not covered under loss sharing agreements decreased by $90 million, mainly at BPPR by $202 million due mostly to the reclassification of a public sector loan of approximately $75 million to held-for-sale and payments received from loans in the public sector, partially offset by an increase of $112 million at BPNA mostly from growth in the commercial loans portfolio. These increases were partially offset by decreases in covered loans, before the reclassification, by $252 million due to the normal run-off and resolution of the portfolio.

Other variances for the quarter included:

  • An increase of $948 million in money market investments mainly due to liquidity maintained in the cash balances held with the Federal Reserve Bank.
  • An increase of $344 million in other assets mainly due to the partial reversal of the valuation allowance on the deferred tax asset at the U.S. operations of $545 million, partially offset by a decrease of $96 million in accounts receivable related to the Doral Acquisition and the transfer of $55 million of contingent assets to mortgage servicing rights as BPPR completed the acquisition of mortgage servicing rights on three pools of residential mortgage loans.
  • An increase of $36 million in investment securities available-for-sale mainly at BPPR due mostly to the purchase of mortgage backed agency pools and US Treasury securities.
  • A decrease of $38 million in the allowance for loan losses including covered loans activity mainly due to $82 million in net charge-offs and $32 million in write downs from loans transferred to held-for-sale, partially offset by provision for loan losses for the quarter of $76 million.

These increases were partially offset by:

  • A decrease of $80 million in other real estate covered under loss sharing agreements with the FDIC. Excluding the reclassification of $15 million of commercial foreclosed assets formerly covered under loss sharing arrangement with the FDIC, the decrease was $65 million mainly due to a bulk sale of commercial properties of $37 million and regular sales activity during the quarter.

Total liabilities increased by $553 million from the first quarter of 2015, driven by:

  • An increase of $477 million in deposits, mainly at BPPR which increased by $538 million mostly due interest bearing deposits, partially offset by a decrease at BPNA of $60 million mainly due to deposits from the Doral Acquisition. Refer to Table G for additional information on deposits.
  • An increase of $100 million in other short term borrowings at BPNA as part of the Corporation’s funding strategy.
  • An increase of $47 million in notes payable mainly at BPPR due to $57 million of FHLBNY advances obtained during the quarter, partially offset by regular debt amortization.

These increases were partially offset by:

  • A decrease of $59 million in other liabilities mainly due to a $55 million decrease in accounts payable related to the Doral Acquisition.

Stockholders’ equity increased by $572 million from the first quarter of 2015, mainly as a result of net income for the quarter of $597 million, partially offset by an increase in accumulated other comprehensive loss of $25 million.

Common equity tier-1 ratio and tangible book value per share were 15.61% and $41.75, respectively, at June 30, 2015, compared to 15.74% and $36.33 at March 31, 2015. Refer to Table A for capital ratios.

Forward-Looking Statements

The information included in this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.These forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that may cause the Corporation's actual results to differ materially from any future results expressed or implied by such forward-looking statements. Please refer to our Annual Report on Form 10-K for the year ended December 31, 2014, the Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 and our other filings with the SEC for a discussion of those factors that could impact our future results. Other than to the extent required by applicable law, the Corporation undertakes no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances after the date of such statements.

Founded in 1893, Popular, Inc. is the leading banking institution by both assets and deposits in Puerto Rico and ranks among the top 50 U.S. banks by assets. In the United States, Popular has established a community-banking franchise providing a broad range of financial services and products with branches in New York, New Jersey and Florida.

An electronic version of this press release can be found at the Corporation’s website: www.popular.com.

Popular will hold a conference call to discuss the financial results today Friday, July 24, 2015, at 10:00 a.m. Eastern Standard Time. The call will be broadcast live over the Internet and can be accessed through the investor relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 1-866-235-1201 or 1-412-902-4127.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Monday, August 24, 2015. The replay dial in is 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10068380.

 

Popular, Inc.

Financial Supplement to Second Quarter 2015 Earnings Release
 
Table A - Selected Ratios and Other Information
 
Table B - Consolidated Statement of Operations
 
Table C - Consolidated Statement of Financial Condition
 
Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER
 
Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE
 
Table F - Mortgage Banking Activities and Other Service Fees
 
Table G - Loans and Deposits
 
Table H - Non-Performing Assets
 
Table I - Activity in Non-Performing Loans
 
Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios
 
Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED
 
Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS
 
Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS
 
Table N - Reconciliation to GAAP Financial Measures
 
Table O - Financial Information - Westernbank Loans
 
Table P - Restructuring Charges
 
         
POPULAR, INC.
Financial Supplement to Second Quarter 2015 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
 
 
Quarters ended Six months ended
    30-Jun-15   31-Mar-15   30-Jun-14   30-Jun-15   30-Jun-14
Basic EPS from continuing operations $5.80 $0.71 $(3.21 ) $6.51 $(2.58 )
Basic EPS from discontinued operations $- $0.01 $(1.77 ) $0.01 $(1.57 )
Total Basic EPS $5.80 $0.72 $(4.98 ) $6.52 $(4.15 )
Diluted EPS from continuing operations $5.79 $0.71 $(3.21 ) $6.49 $(2.58 )
Diluted EPS from discontinued operations $- $0.01 $(1.77 ) $0.01 $(1.57 )
Total Diluted EPS $5.79 $0.72 $(4.98 ) $6.50 $(4.15 )
Average common shares outstanding 102,860,134 102,939,928 102,781,438 102,899,810 102,790,545
Average common shares outstanding - assuming dilution 103,103,261 103,136,309 102,781,438 103,113,553 102,790,545
Common shares outstanding at end of period 103,503,912 103,486,927 103,472,979 103,503,912 103,472,979
 
Market value per common share $28.86 $34.39 $34.18 $28.86 $34.18
 
Market capitalization - (In millions) $2,987 $3,559 $3,537 $2,987 $3,537
 
Return on average assets 6.74 % 0.90 % (5.66 )% 3.91 % (2.37 )%

 

Return on average common equity 54.93 % 7.02 % (43.04 )% 31.34 % (18.19 )%
 
Net interest margin [1] 4.54 % 4.57 % 4.68 % 4.56 % 4.69 %
 
Common equity per share $47.34 $41.81 $40.69 $47.34 $40.69
 
Tangible common book value per common share (non-GAAP) $41.75 $36.33 $35.84 $41.75 $35.84
 
Tangible common equity to tangible assets (non-GAAP) 11.95 % 10.72 % 10.28 % 11.95 % 10.28 %
 
Tier 1 capital [2] [3]

15.61

% 16.11 % 19.23 %

15.61

% 19.23 %
 
Total capital [2] [3]

18.14

% 18.71 % 20.69 %

18.14

% 20.69 %
 
Tier 1 leverage [2] [3]

11.55

% 11.80 % 13.07 %

11.55

% 13.07 %
 

Common equity to Tier 1 capital [2] [3]

 

15.61

%  

15.74

%   13.51 %  

15.61

%   13.51 %
 
[1] Not on a taxable equivalent basis.
 

[2] Ratios for the quarters ending June 30, 2015, and March 31, 2015, were calculated based on Basel III Rules, while ratios for the previous periods were calculated based on the then applicable Basel I rules.

 
[3] Capital ratios for the current quarter are preliminary.
 
 

 

           
POPULAR, INC.
Financial Supplement to Second Quarter 2015 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
 
Quarters ended Variance Quarter ended Variance Six months ended
(In thousands, Q2 2015 Q2 2015
except per share vs. vs.
information)   30-Jun-15   31-Mar-15   Q1 2015   30-Jun-14   Q2 2014   30-Jun-15   30-Jun-14
Interest income:
Loans $374,133 $355,631 $18,502 $380,986 $(6,853 ) $729,764 $758,588
Money market investments 1,845 1,446 399 1,131 714 3,291 2,104
Investment securities 31,297 30,301 996 33,989 (2,692 ) 61,598 69,116
Trading account securities   3,026     2,696     330     5,344     (2,318 )   5,722     10,601  
Total interest income   410,301     390,074     20,227     421,450     (11,149 )   800,375     840,409  
Interest expense:
Deposits 26,258 25,864 394 26,223 35 52,122 53,081
Short-term borrowings 1,863 1,734 129 8,892 (7,029 ) 3,597 17,932
Long-term debt   19,627     19,281     346     445,716     (426,089 )   38,908     477,606  
Total interest expense   47,748     46,879     869     480,831     (433,083 )   94,627     548,619  
Net interest income 362,553 343,195 19,358 (59,381 ) 421,934 705,748 291,790
Provision for loan losses - non-covered loans 60,468 29,711 30,757 50,074 10,394 90,179 104,196
Provision for loan losses - covered loans   15,766     10,324     5,442     11,604     4,162     26,090     37,318  
Net interest income (loss) after provision for loan losses   286,319     303,160     (16,841 )   (121,059 )   407,378     589,479     150,276  
Service charges on deposit accounts 40,138 39,017 1,121 39,237 901 79,155 78,596
Other service fees 59,421 53,626 5,795 56,468 2,953 113,047 109,286
Mortgage banking activities 21,325 12,852 8,473 3,788 17,537 34,177 7,466
Net (loss) and valuation adjustments on investment securities (14,440 ) - (14,440 ) - (14,440 ) (14,440 ) -
Trading account (loss) profit (3,108 ) 414 (3,522 ) 1,055 (4,163 ) (2,694 ) 3,032
Net gain (loss) on sale of loans, including valuation adjustments on loans held-for-sale 681 (79 ) 760 9,659 (8,978 ) 602 14,052
Adjustments (expense) to indemnity reserves on loans sold 419 (4,526 ) 4,945 (7,454 ) 7,873 (4,107 ) (17,801 )
FDIC loss share income (expense) 19,075 4,139 14,936 (55,261 ) 74,336 23,214 (79,467 )
Other operating income   17,248     9,792     7,456     15,297     1,951     27,040     43,657  
Total non-interest income   140,759     115,235     25,524     62,789     77,970     255,994     158,821  
Operating expenses:
Personnel costs
Salaries 76,453 72,394 4,059 69,149 7,304 148,847 138,187
Commissions, incentives and other bonuses 24,214 18,458 5,756 12,105 12,109 42,672 25,961
Pension, postretirement and medical insurance 9,075 12,013 (2,938 ) 7,533 1,542 21,088 16,233
Other personnel costs, including payroll taxes   11,235     13,593     (2,358 )   10,313     922     24,828     23,020  
Total personnel costs 120,977 116,458 4,519 99,100 21,877 237,435 203,401
Net occupancy expenses 23,286 21,709 1,577 20,267 3,019 44,995 41,627
Equipment expenses 15,925 13,411 2,514 12,044 3,881 29,336 23,456
Other taxes 11,113 8,574 2,539 13,543 (2,430 ) 19,687 27,206
Professional fees 78,449 75,528 2,921 67,024 11,425 153,977 134,023
Communications 6,153 6,176 (23 ) 6,425 (272 ) 12,329 13,110
Business promotion 13,776 10,813 2,963 16,038 (2,262 ) 24,589 27,424
FDIC deposit insurance 8,542 6,398 2,144 10,480 (1,938 ) 14,940 21,458
Other real estate owned (OREO) expenses 44,816 23,069 21,747 3,410 41,406 67,885 9,850
Credit and debit card processing, volume, interchange and other expenses 5,762 4,821 941 5,640 122 10,583 10,836
Other operating expenses 25,320 12,528 12,792 14,869 10,451 37,847 32,022
Amortization of intangibles 2,881 2,104 777 2,025 856 4,985 4,051
Restructuring costs   6,174     10,753     (4,579 )   4,574     1,600     16,927     4,574  
Total operating expenses   363,174     312,342     50,832     275,439     87,735     675,515     553,038  
Income (loss) from continuing operations before income tax 63,904 106,053 (42,149 ) (333,709 ) 397,613 169,958 (243,941 )
Income tax (benefit) expense   (533,533 )   32,568     (566,101 )   (4,124 )   (529,409 )   (500,964 )   19,140  
Income (loss) from continuing operations 597,437 73,485 523,952 (329,585 ) 927,022 670,922 (263,081 )
Income (loss) from discontinued operations, net of tax   15     1,341     (1,326 )   (181,729 )   181,744     1,356     (161,824 )
Net income (loss)   $597,452     $74,826     $522,626     $(511,314 )   $1,108,766     $672,278     $(424,905 )
Net income (loss) applicable to common stock   $596,521     $73,896     $522,625     $(512,245 )   $1,108,766     $670,417     $(426,767 )
Net income (loss) per common share - basic:
Net income (loss) from continuing operations $5.80 $0.71 $5.09 $(3.21 ) $9.01 $6.51 $(2.58 )
Net income (loss) from discontinued operations   -     $0.01     $(0.01 )   $(1.77 )   $1.77     $0.01     $(1.57 )
Net income (loss) per common share - basic   $5.80     $0.72     $5.08     $(4.98 )   $10.78     $6.52     $(4.15 )
Net income (loss) per common share - diluted:
Net income (loss) from continuing operations $5.79 $0.71 $5.08 $(3.21 ) $9.00 $6.49 $(2.58 )
Net income (loss) from discontinued operations   -     $0.01     $(0.01 )   $(1.77 )   $1.77     $0.01     $(1.57 )
Net income (loss) per common share - diluted   $5.79     $0.72     $5.07     $(4.98 )   $10.77     $6.50     $(4.15 )
 
 

 

     
Popular, Inc.
Financial Supplement to Second Quarter 2015 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
 
Variance
Q2 2015 vs.
(In thousands)   30-Jun-15   31-Mar-15   30-Jun-14   Q1 2015
Assets:
Cash and due from banks $557,248 $495,776 $362,572 $61,472
Money market investments 3,254,939 2,307,215 1,666,944 947,724
Trading account securities, at fair value 141,595 134,294 345,823 7,301
Investment securities available-for-sale, at fair value 5,585,078 5,548,703 5,653,992 36,375
Investment securities held-to-maturity, at amortized cost 101,861 101,595 114,280 266
Other investment securities, at lower of cost or realizable value 165,505 163,038 168,125 2,467
Loans held-for-sale, at lower of cost or fair value 202,287 160,602 97,010 41,685
Loans held-in-portfolio:
Loans not covered under loss sharing agreements with the FDIC 22,535,008 21,110,147 19,726,234 1,424,861
Loans covered under loss sharing agreements with the FDIC 689,650 2,456,552 2,736,102 (1,766,902 )
Less: Unearned income 99,863 97,217 91,010 2,646
Allowance for loan losses   550,813     588,697     624,911     (37,884 )
Total loans held-in-portfolio, net   22,573,982     22,880,785     21,746,415     (306,803 )
FDIC loss share asset 392,947 409,844 751,553 (16,897 )
Premises and equipment, net 497,078 492,291 492,382 4,787
Other real estate not covered under loss sharing agreements with the FDIC 142,255 128,170 139,420 14,085
Other real estate covered under loss sharing agreements with the FDIC 33,504 113,557 155,805 (80,053 )
Accrued income receivable 130,281 129,639 119,520 642
Mortgage servicing assets, at fair value 206,357 149,024 151,951 57,333
Other assets 2,186,883 1,842,934 2,292,360 343,949
Goodwill 505,578 508,310 461,246 (2,732 )
Other intangible assets 72,735 59,063 40,122 13,672
Assets from discontinued operations   -     -     1,828,382     -  
Total assets   $36,750,113     $35,624,840     $36,587,902     $1,125,273  
Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing $6,305,986 $6,285,202 $5,666,685 $20,784
Interest bearing   21,444,708     20,988,487     19,234,467     456,221  
Total deposits   27,750,694     27,273,689     24,901,152     477,005  
Federal funds purchased and assets sold under agreements to repurchase 1,121,244 1,132,643 2,074,676 (11,399 )
Other short-term borrowings 101,200 1,200 31,200 100,000
Notes payable 1,804,028 1,757,313 2,360,089 46,715
Other liabilities 1,021,540 1,080,945 880,602 (59,405 )
Liabilities from discontinued operations   1,754     1,930     2,079,742     (176 )
Total liabilities   31,800,460     31,247,720     32,327,461     552,740  
Stockholders’ equity:
Preferred stock 50,160 50,160 50,160 -
Common stock 1,037 1,037 1,035 -
Surplus 4,199,165 4,197,932 4,173,616 1,233
Retained earnings 924,134 327,613 167,663 596,521
Treasury stock (5,812 ) (5,222 ) (1,742 ) (590 )
Accumulated other comprehensive loss   (219,031 )   (194,400 )   (130,291 )   (24,631 )
Total stockholders’ equity   4,949,653     4,377,120     4,260,441     572,533  
Total liabilities and stockholders’ equity   $36,750,113     $35,624,840     $36,587,902     $1,125,273  
 
                             
Popular, Inc.
Financial Supplement to Second Quarter 2015 Earnings Release
Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER
(Unaudited)
 

($ amounts in

Quarter ended Quarter ended Quarter ended Variance Variance

millions; yields

30-Jun-15 31-Mar-15 30-Jun-14 Q2 2015 vs. Q1 2015 Q2 2015 vs. Q2 2014
not on a taxable Average Income / Yield / Average Income / Yield / Average Income / Yield / Average Income / Yield / Average Income / Yield /
equivalent basis)   balance   Expense   Rate balance   Expense   Rate balance   Expense   Rate balance   Expense   Rate balance   Expense   Rate
Assets:
Interest earning assets:
Money market, trading and investment securities $8,575     $36.2   1.69 % $7,767     $34.4   1.78 % $7,839     $40.4     2.07 % $808     $1.8     (0.09 )% $736     ($4.2 )   (0.38

)%

Loans not covered under loss sharing agreements with the FDIC:
Commercial 8,776 108.0 4.93 8,383 100.9 4.88 8,446 102.2 4.86 393 7.1 0.05 330 5.8 0.07
Construction 682 10.2 6.02 435 6.1 5.67 175 2.4 5.55 247 4.1 0.35 507 7.8 0.47
Mortgage 7,175 93.4 5.21 6,733 85.9 5.10 6,691 85.3 5.10 442 7.5 0.11 484 8.1 0.11
Consumer 3,823 97.1 10.19 3,845 95.4 10.07 3,894 97.9 10.08 (22 ) 1.7 0.12 (71 ) (0.8 ) 0.11
Lease financing 583     10.1   6.93   569     10.0   7.01   546     10.2     7.43   14     0.1     (0.08 ) 37     (0.1 )   (0.50 )
Total loans not covered under loss sharing agreements with the FDIC 21,039 318.8 6.07 19,965 298.3 6.03 19,752 298.0 6.05 1,074 20.5 0.04 1,287 20.8 0.02
Loans covered under loss sharing agreements with the FDIC 2,350     55.3   9.44   2,540     57.4   9.14   2,811     83.0     11.83   (190 )   (2.1 )   0.30   (461 )   (27.7 )   (2.39 )
Total loans 23,389     374.1   6.41   22,505     355.7   6.38   22,563     381.0     6.77   884     18.4     0.03   826     (6.9 )   (0.36 )
Total interest earning assets 31,964     $410.3   5.14 % 30,272     $390.1   5.20 % 30,402     $421.4     5.56 % 1,692     $20.2     (0.06 )% 1,562     ($11.1 )   (0.42

)%

Allowance for loan losses (599 ) (609 ) (627 ) 10 28
Other non-interest earning assets 4,212 4,143 4,598 69 (386 )
Assets from discontinued operations -   -   1,863   -   (1,863 )
Total average assets $35,577   $33,806   $36,236   $1,771   $(659 )
 
Liabilities and Stockholders' Equity:
Interest bearing deposits:
NOW and money market $5,507 $4.9 0.36 % $4,983 $4.2 0.34 % $4,897 $3.8 0.32 % $524 $0.7 0.02 % $610 $1.1 0.04

%

Savings 7,040 4.1 0.23 6,892 3.9 0.23 6,713 3.6 0.22 148 0.2 - 327 0.5 0.01
Time deposits 8,530     17.2   0.81   7,747     17.8   0.93   7,709     18.8     0.98   783     (0.6 )   (0.12 ) 821     (1.6 )   (0.17 )
Total interest bearing deposits 21,077 26.2 0.50 19,622 25.9 0.53 19,319 26.2 0.54 1,455 0.3 (0.03 ) 1,758 - (0.04 )

Borrowings [1]

2,855     21.5   3.01   2,877     21.0   2.93   3,614     40.5     4.49   (22 )   0.5     0.08   (759 )   (19.0 )   (1.48 )
Total interest bearing liabilities 23,932     47.7   0.80   22,499     46.9   0.84   22,933     66.7     1.17   1,433     0.8     (0.04 ) 999     (19.0 )   (0.37 )
Net interest spread 4.34 % 4.36 % 4.39 % (0.02 )% (0.05

)%

Non-interest bearing deposits 6,247 5,963 5,451 284 796
Other liabilities 991 1,021 915 (30 ) 76
Liabilities from discontinued operations 2 3 2,113 (1 ) (2,111 )
Stockholders' equity 4,405   4,320   4,824   85   (419 )
Total average liabilities and stockholders' equity $35,577   $33,806   $36,236   $1,771   $(659 )
 
Adjusted net interest income / margin non-taxable equivalent basis $362.6   4.54 % $343.2   4.57 % $354.7     4.68 % $19.4     (0.03 )% $7.9     (0.14

)%

Accelerated amortization TARP discount and related deferred costs 414.1
Net interest income / margin non-taxable equivalent basis ($59.4 )   (0.77 )%
 
(1) Including the impact of the accelerated amortization, the total cost of borrowings for the second quarter 2014 would have been 50.31%.
 

 

 

               
Popular, Inc.
Financial Supplement to Second Quarter 2015 Earnings Release
Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE
(Unaudited)
 

 

Six months ended Six months ended

($ amounts in millions;

30-Jun-15 30-Jun-14 Variance

yields not on a taxable

Average Income / Yield / Average Income / Yield / Average Income / Yield /
equivalent basis)   balance   Expense   Rate balance   Expense   Rate balance   Expense   Rate
Assets:
Interest earning assets:
Money market, trading and investment securities $8,173     $70.6   1.73 % $7,703     $81.8   2.13 % $470     ($11.2 )   (0.40 )%
Loans not covered under loss sharing agreements with the FDIC:
Commercial 8,581 208.8 4.91 8,467 202.8 4.83 114 6.0 0.08
Construction 559 16.3 5.89 180 7.3 8.11 379 9.0 (2.22 )
Mortgage 6,955 179.3 5.15 6,691 172.2 5.15 264 7.1 -
Consumer 3,834 192.5 10.13 3,828 191.7 10.10 6 0.8 0.03
Lease financing 576     20.0   6.97   545     20.5   7.50   31     (0.5 )   (0.53 )
Total loans not covered under loss sharing agreements with the FDIC 20,505 616.9 6.05 19,711 594.5 6.07 794 22.4 (0.02 )
Loans covered under loss sharing agreements with the FDIC 2,445     112.8   9.29   2,872     164.1   11.50   (427 )   (51.3 )   (2.21 )
Total loans 22,950     729.7   6.40   22,583     758.6   6.76   367     (28.9 )   (0.36 )
Total interest earning assets 31,123     $800.3   5.17 % 30,286     $840.4   5.58 % 837     ($40.1 )   (0.41 )%
Allowance for loan losses (604 ) (622 ) 18
Other non-interest earning assets 4,177 4,643 (466 )
Assets from discontinued operations -   1,909   (1,909 )
Total average assets $34,696   $36,216   ($1,520 )
 
Liabilities and Stockholders' Equity:
Interest bearing deposits:
NOW and money market $5,246 $9.1 0.35 % $4,817 $7.6 0.32 % $429 $1.5 0.03 %
Savings 6,966 8.0 0.23 6,702 7.2 0.22 264 0.8 0.01
Time deposits 8,141     35.0   0.87   7,624     38.3   1.01   517     (3.3 )   (0.14 )
Total interest bearing deposits 20,353 52.1 0.52 19,143 53.1 0.56 1,210 (1.0 ) (0.04 )
Borrowings [1] 2,866     42.5   2.97   3,740     81.4   4.37   (874 )   (38.9 )   (1.40 )
Total interest bearing liabilities 23,219     94.6   0.82   22,883     134.5   1.18   336     (39.9 )   (0.36 )
Net interest spread 4.35 % 4.40 % (0.05 )%
Non-interest bearing deposits 6,106 5,517 589
Other liabilities 1,006 905 101
Liabilities from discontinued operations 2 2,129 (2,127 )
Stockholders' equity 4,363   4,782   (419 )
Total average liabilities and stockholders' equity $34,696   $36,216   ($1,520 )
 
Adjusted net interest income / margin non-taxable equivalent basis $705.7   4.56 % $705.9   4.69 % ($0.2 )   (0.13 )%
Accelerated amortization of TARP discount and related deferred costs - 414.1 (414.1 )
Net interest income/margin non-taxable equivalent basis $705.7   4.56 % $291.8   1.95 % $413.9     2.61 %
 
(1) Including the impact of the accelerated amortization, the total cost of borrowings for the second quarter 2014 would have been 26.51%.
 

 

 

             
Popular, Inc.
Financial Supplement to Second Quarter 2015 Earnings Release
Table F - Mortgage Banking Activities and Other Service Fees
(Unaudited)
 

Mortgage Banking Activities

 

Variance
Quarters ended Q2 2015 vs. Q2 2015 vs. Six months ended Variance
(In thousands)   30-Jun-15     31-Mar-15     30-Jun-14     Q1 2015   Q2 2014   30-Jun-15     30-Jun-14     2015 vs. 2014
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees $14,689 $12,248 $10,558 $2,441 $4,131 $26,937 $21,306 $5,631
Mortgage servicing rights fair value adjustments   (1,917 )   (4,929 )   (7,740 )   3,012   5,823     (6,846 )   (15,836 )   8,990  
Total mortgage servicing fees, net of fair value adjustments   12,772     7,319     2,818     5,453   9,954     20,091     5,470     14,621  
Net gain on sale of loans, including valuation on loans held-for-sale   8,022     7,280     8,189     742   (167 )   15,302     15,365     (63 )
Trading account profit (loss):
Unrealized gains (losses) on outstanding derivative positions 42 17 22 25 20 59 (738 ) 797
Realized gains (losses) on closed derivative positions   489     (1,764 )   (7,241 )   2,253   7,730     (1,275 )   (12,631 )   11,356  
Total trading account profit (loss)   531     (1,747 )   (7,219 )   2,278   7,750     (1,216 )   (13,369 )   12,153  
Total mortgage banking activities   $21,325     $12,852     $3,788     $8,473   $17,537     $34,177     $7,466     $26,711  
 

 

               

Other Service Fees

 

Variance
Quarters ended Q2 2015 vs. Q2 2015 vs. Six months ended Variance
(In thousands)   30-Jun-15   31-Mar-15   30-Jun-14   Q1 2015   Q2 2014   30-Jun-15   30-Jun-14   2015 vs. 2014
Other service fees:
Debit card fees $11,995 $11,125 $11,000 $870 $995 $23,120 $21,544 $1,576
Insurance fees 13,606 12,041 12,406 1,565 1,200 25,647 24,125 1,522
Credit card fees 17,611 16,149 16,985 1,462 626 33,760 33,068 692
Sale and administration of investment products 6,601 5,930 7,456 671 (855 ) 12,531 13,913 (1,382 )
Trust fees 4,914 4,602 4,566 312 348 9,516 9,029 487
Other fees   4,694   3,779   4,055   915   639     8,473   7,607   866  
Total other service fees   $59,421   $53,626   $56,468   $5,795   $2,953     $113,047   $109,286   $3,761  
 

 

 

       
Popular, Inc.
Financial Supplement to Second Quarter 2015 Earnings Release
Table G - Loans and Deposits
(Unaudited)
 
Loans - Ending Balances
Variance
(In thousands)   30-Jun-15   31-Mar-15   30-Jun-14   Q2 2015 vs. Q1 2015   Q2 2015 vs. Q2 2014
Loans not covered under FDIC loss sharing agreements:
Commercial $10,004,716 $8,653,561 $8,155,547 $1,351,155 $1,849,169
Construction 696,010 690,728 179,059 5,282 516,951
Legacy [1] 72,502 77,675 162,941 (5,173 ) (90,439 )
Lease financing 592,816 581,119 546,868 11,697 45,948
Mortgage 7,225,823 7,189,227 6,664,448 36,596 561,375
Consumer   3,843,278   3,820,620   3,926,361   22,658     (83,083 )
Total non-covered loans held-in-portfolio $22,435,145 $21,012,930 $19,635,224 $1,422,215 $2,799,921
Loans covered under FDIC loss sharing agreements   689,650   2,456,552   2,736,102   (1,766,902 )   (2,046,452 )
Total loans held-in-portfolio   $23,124,795   $23,469,482   $22,371,326   $(344,687 )   $753,469  
Loans held-for-sale:
Commercial $48,969 $8,240 $2,895 $40,729 $46,074
Construction 1,681 - 949 1,681 732
Mortgage   151,637   152,362   93,166   (725 )   58,471  
Total loans held-for-sale   $202,287   $160,602   $97,010   $41,685     $105,277  
Total loans   $23,327,082   $23,630,084   $22,468,336   $(303,002 )   $858,746  
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.
 
 
Deposits - Ending Balances
Variance
(In thousands)   30-Jun-15   31-Mar-15   30-Jun-14   Q2 2015 vs. Q1 2015   Q2 2015 vs. Q2 2014
Demand deposits [1] $7,262,176 $7,163,635 $6,412,632 $98,541 $849,544
Savings, NOW and money market deposits (non-brokered) 11,177,288 10,932,870 10,276,715 244,418 900,573
Savings, NOW and money market deposits (brokered) 468,973 409,113 543,032 59,860 (74,059 )
Time deposits (non-brokered) 7,367,256 7,243,414 5,790,324 123,842 1,576,932
Time deposits (brokered CDs)   1,475,001   1,524,657   1,878,449   (49,656 )   (403,448 )
Total deposits   $27,750,694   $27,273,689   $24,901,152   $477,005     $2,849,542  
[1] Includes interest and non-interest bearing demand deposits.
 
 

 

             
Popular, Inc.
Financial Supplement to Second Quarter 2015 Earnings Release
Table H - Non-Performing Assets
(Unaudited)
 
Variance
(Dollars in thousands)   30-Jun-15   As a % of loans HIP by category   31-Mar-15   As a % of loans HIP by category   30-Jun-14   As a % of loans HIP by category   Q2 2015 vs. Q1 2015   Q2 2015 vs. Q2 2014
Non-accrual loans:
Commercial $190,294 1.9 % $274,438 3.2 % $278,133 3.4 % $(84,144 ) $(87,839 )
Construction 5,427 0.8 13,214 1.9 21,456 12.0 (7,787 ) (16,029 )
Legacy [1] 4,686 6.5 2,288 2.9 8,323 5.1 2,398 (3,637 )
Lease financing 2,328 0.4 2,506 0.4 2,873 0.5 (178 ) (545 )
Mortgage 330,821 4.6 328,615 4.6 286,320 4.3 2,206 44,501
Consumer   42,441     1.1     43,892     1.1     42,630     1.1     (1,451 )   (189 )

Total non-performing loans held-in-portfolio, excluding covered loans

575,997 2.6 % 664,953 3.2 % 639,735 3.3 % (88,956 ) (63,738 )
Non-performing loans held-for-sale [2] 50,875 8,404 4,426 42,471 46,449

Other real estate owned (“OREO”), excluding covered OREO

  142,255           128,170           139,420           14,085     2,835  

Total non-performing assets, excluding covered assets

769,127 801,527 783,581 (32,400 ) (14,454 )
Covered loans and OREO   37,367           133,211           171,955           (95,844 )   (134,588 )
Total non-performing assets   $806,494           $934,738           $955,536           $(128,244 )   $(149,042 )
Accruing loans past due 90 days or more [3]  

$432,677

          $451,035           $420,251          

$(18,358

)  

$12,426

 
Ratios excluding covered loans:

Non-performing loans held-in-portfolio to loans held-in-portfolio

2.57

%

 

3.16

%

 

3.26

%

 

Allowance for loan losses to loans held-in-portfolio

2.29 2.46 2.68

Allowance for loan losses to non-performing loans, excluding loans held-for-sale

  89.02           77.63           82.26                    
Ratios including covered loans:
Non-performing assets to total assets

2.19

%

 

2.62

%

 

2.61

%

 

Non-performing loans held-in-portfolio to loans held-in-portfolio

2.51 2.92 2.93

Allowance for loan losses to loans held-in-portfolio

2.38 2.51 2.79

Allowance for loan losses to non-performing loans, excluding loans held-for-sale

  94.99           85.99           95.28                    
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.
 
[2] Non-performing loans held-for-sale as of June 30, 2015 consisted of $49 million in commercial loans, $2 million in construction loans and $225 thousand in mortgage loans (March 31, 2015 - $225 thousand in mortgage loans and $8.2 million in commercial loans; June 30, 2014 - $582 thousand in mortgage loans, $3 million in commercial loans and $1 million in construction loans).
 
[3] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These balances include $133 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2015 (March 31, 2015 - $134 million; June 30, 2014 - $124 million). Furthermore, the Corporation has approximately $71.5 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (March 31, 2015 - $69 million; June 30, 2014 - $60 million).
 
           
Popular, Inc.
Financial Supplement to Second Quarter 2015 Earnings Release
Table I - Activity in Non-Performing Loans
(Unaudited)
 
Commercial loans held-in-portfolio:
Quarter ended Quarter ended
30-Jun-15   31-Mar-15
(In thousands)   BPPR   BPNA   Popular, Inc.   BPPR   BPNA   Popular, Inc.
Beginning balance NPLs $264,631 $9,807 $274,438 $257,910 $2,315 $260,225
Plus:
New non-performing loans[1] 17,092 1,386 18,478 27,426 8,030 35,456
Advances on existing non-performing loans - 383 383 - - -
Reclass from covered loans 7,395 - 7,395 - - -
Less:
Non-performing loans transferred to OREO (3,568 ) - (3,568 ) (1,069 ) - (1,069 )
Non-performing loans charged-off (51,804 ) (399 ) (52,203 ) (8,375 ) (426 ) (8,801 )
Loans returned to accrual status / loan collections (9,351 ) (282 ) (9,633 ) (11,261 ) (112 ) (11,373 )
Loans transferred to held-for-sale   (44,996 )   -     (44,996 )   -     -     -  
Ending balance NPLs   $179,399     $10,895     $190,294     $264,631     $9,807     $274,438  

[1] For the quarter ended March 31, 2015, new non-performing loans includes $1.2 million at BPPR and $7.4 million at BPNA from Doral Acquisition.

 
Construction loans held-in-portfolio:
Quarter ended Quarter ended
30-Jun-15   31-Mar-15
(In thousands)   BPPR   BPNA   Popular, Inc.   BPPR   BPNA   Popular, Inc.
Beginning balance NPLs $13,214 $- $13,214 $13,812 $- $13,812
Plus:
New non-performing loans - 671 671 456 - 456
Reclass from covered loans 112 - 112 - - -
Less:
Non-performing loans transferred to OREO (2,194 ) - (2,194 ) - - -
Loans returned to accrual status / loan collections   (6,376 )   -     (6,376 )   (1,054 )   -     (1,054 )
Ending balance NPLs   $4,756     $671     $5,427     $13,214     $-     $13,214  
 
Mortgage loans held-in-portfolio:
Quarter ended Quarter ended
30-Jun-15   31-Mar-15
(In thousands)   BPPR   BPNA   Popular, Inc.   BPPR   BPNA   Popular, Inc.
Beginning balance NPLs $320,154 $8,461 $328,615 $295,629 $9,284 $304,913
Plus:
New non-performing loans[1] 85,555 11,857 97,412 107,385 6,232 113,617
Reclass from covered loans 568 - 568 - - -
Less:
Non-performing loans transferred to OREO (6,103 ) (314 ) (6,417 ) (4,845 ) - (4,845 )
Non-performing loans charged-off (7,998 ) (319 ) (8,317 ) (8,158 ) (123 ) (8,281 )
Loans returned to accrual status / loan collections (73,403 ) (7,637 ) (81,040 ) (69,857 ) (8,970 ) (78,827 )
Loans transferred to held-for-sale   -     -     -     -     2,038     2,038  
Ending balance NPLs   $318,773     $12,048     $330,821     $320,154     $8,461     $328,615  
[1] For the quarter ended March 31, 2015 new non-performing loans includes $16.6 million of loans previously serviced by Doral.
 
Legacy loans held-in-portfolio:
Quarter ended Quarter ended
30-Jun-15   31-Mar-15
(In thousands)   BPPR   BPNA   Popular, Inc.   BPPR   BPNA   Popular, Inc.
Beginning balance NPLs $- $2,288 $2,288 $- $1,545 $1,545
Plus:
New non-performing loans - 3,077 3,077 - 1,000 1,000
Advances on existing non-performing loans - 14 14 - 33 33
Less:
Non-performing loans charged-off - (433 ) (433 ) - (141 ) (141 )
Loans returned to accrual status / loan collections   -     (260 )   (260 )   -     (149 )   (149 )
Ending balance NPLs   $-     $4,686     $4,686     $-     $2,288     $2,288  
 
Total non-performing loans held-in-portfolio (excluding consumer loans):
Quarter ended Quarter ended
30-Jun-15   31-Mar-15
(In thousands)   BPPR   BPNA   Popular, Inc.   BPPR   BPNA   Popular, Inc.
Beginning balance NPLs $597,999 $20,556 $618,555 $567,351 $13,144 $580,495
Plus:
New non-performing loans 102,647 16,991 119,638 135,267 15,262 150,529
Advances on existing non-performing loans - 397 397 - 33 33
Reclass from covered loans 8,075 - 8,075 - - -
Less:
Non-performing loans transferred to OREO (11,865 ) (314 ) (12,179 ) (5,914 ) - (5,914 )
Non-performing loans charged-off (59,802 ) (1,151 ) (60,953 ) (16,533 ) (690 ) (17,223 )
Loans returned to accrual status / loan collections (89,130 ) (8,179 ) (97,309 ) (82,172 ) (9,231 ) (91,403 )
Loans transferred to held-for-sale   (44,996 )   -     (44,996 )   -     2,038     2,038  
Ending balance NPLs   $502,928     $28,300     $531,228     $597,999     $20,556     $618,555  
 
                 
Popular, Inc.
Financial Supplement to Second Quarter 2015 Earnings Release
Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)
 
 
Quarter ended Quarter ended Quarter ended
    30-Jun-15   31-Mar-15   30-Jun-14
(Dollars in thousands)   Non-covered loans   Covered loans   Total   Non-covered loans   Covered loans   Total   Non-covered loans   Covered loans   Total
Balance at beginning of period $516,224 $72,473 $588,697 $519,719 $82,073 $601,792 $542,575 $97,773 $640,348
Provision for loan losses - Continuing operations   60,468     15,766     76,234     29,711     10,324     40,035     50,074     11,604     61,678  
    576,692     88,239     664,931     549,430     92,397     641,827     592,649     109,377     702,026  
Net loans charged-off (recovered):
BPPR
Commercial 17,059 19,833 36,892 4,802 11,599 16,401 9,309 5,438 14,747
Construction 1,721 14,615 16,336 (2,925 ) 5,771 2,846 (615 ) 3,700 3,085
Lease financing 973 - 973 769 - 769 1,144 1 1,145
Mortgage 10,739 178 10,917 10,473 3,281 13,754 9,926 2,251 12,177
Consumer   14,654     679     15,333     23,653     (727 )   22,926     23,571     (678 )   22,893  
Total BPPR   45,146     35,305     80,451     36,772     19,924     56,696     43,335     10,712     54,047  
 
BPNA
Commercial (879 ) - (879 ) (479 ) - (479 ) 910 - 910
Legacy [1] 30 - 30 (1,828 ) - (1,828 ) (1,205 ) - (1,205 )
Mortgage 176 - 176 154 - 154 393 - 393
Consumer   1,969     -     1,969     1,267     -     1,267     2,768     -     2,768  
Total BPNA   1,296     -     1,296     (886 )   -     (886 )   2,866     -     2,866  
Total loans charged-off - Popular, Inc.   46,442     35,305     81,747     35,886     19,924     55,810     46,201     10,712     56,913  
Balance transferred from covered to non-covered loans [4]   13,037     (13,037 )   -     -     -     -     -     -     -  
Net (write-downs) recoveries [3]   (30,548 )   (1,823 )   (32,371 )   2,680     -     2,680     -     -     -  
Net write-downs related to loans transferred to discontinued operations   -     -     -     -     -     -     (20,202 )   -     (20,202 )
Balance at end of period   $512,739     $38,074     $550,813     $516,224     $72,473     $588,697     $526,246     $98,665     $624,911  
 
POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio 0.89 % 1.41 % 0.72 % 1.00 % 0.94 % 1.01 %
Provision for loan losses to net charge-offs [2] 1.28x 0.92x 0.83x 0.72x 1.08x 1.08x
 
BPPR
Annualized net charge-offs to average loans held-in-portfolio 1.10 % 1.71 % 0.92 % 1.22 % 1.09 % 1.16 %
Provision for loan losses to net charge-offs [2] 1.32x 0.94x 0.87x 0.74x 1.73x 1.60x
 
BPNA
Annualized net charge-offs (recoveries) to average loans held-in-portfolio 0.12 % (0.09 )% 0.30 %
Provision for loan losses to net charge-offs               N.M.                 N.M.                 N.M.  
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.
 
[2] Excluding provision for loan losses and net write-down related to loans sold or reclassified to held-for-sale.
 
[3] Net write-downs are related to loans sold or reclassified to held-for-sale.
 
[4] Represents the transfer of covered to non-covered loans at June 30, 2015.
 
N.M. - Not meaningful.
 
           
Popular, Inc.
Financial Supplement to Second Quarter 2015 Earnings Release
Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED
(Unaudited)
 
30-Jun-15
(Dollars in thousands)   Commercial   Construction   Legacy [3]   Mortgage   Lease financing   Consumer  

Total [2]

Specific ALLL $68,456 $725 $34 $44,162 $607 $25,027 $139,011
Impaired loans [1] $337,577 $3,627 $1,357 $455,834 $2,554 $114,877 $915,826
Specific ALLL to impaired loans [1] 20.28 %   19.99 %  

2.51

%   9.69 %   23.77 %   21.79 %   15.18 %
General ALLL $147,264 $8,262 $3,281 $85,785 $8,553 $120,583 $373,728
Loans held-in-portfolio, excluding impaired loans [1] $9,667,139 $692,383 $71,145 $6,769,989 $590,262 $3,728,401 $21,519,319
General ALLL to loans held-in-portfolio, excluding impaired loans [1] 1.52 %   1.19 %   4.61 %   1.27 %   1.45 %   3.23 %   1.74 %
Total ALLL $215,720 $8,987 $3,315 $129,947 $9,160 $145,610 $512,739
Total non-covered loans held-in-portfolio [1] $10,004,716 $696,010 $72,502 $7,225,823 $592,816 $3,843,278 $22,435,145
ALLL to loans held-in-portfolio [1] 2.16 %   1.29 %   4.57 %   1.80 %   1.55 %   3.79 %   2.29 %
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.
 
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of June 30, 2015 the general allowance on the covered loans amounted to $38.1 million.
 
[3] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.
 
31-Mar-15
(Dollars in thousands)   Commercial   Construction   Legacy [3]   Mortgage   Lease financing   Consumer  

Total [2]

Specific ALLL $69,946 $158 $- $42,570 $687 $25,604 $138,965
Impaired loans [1] $417,377 $9,838 $- $450,612 $2,924 $116,464 $997,215
Specific ALLL to impaired loans [1] 16.76 %   1.61 %   - %   9.45 %   23.50 %   21.98 %   13.94 %
General ALLL $135,946 $3,286 $2,962 $86,271 $6,521 $142,273 $377,259
Loans held-in-portfolio, excluding impaired loans [1] $8,236,184 $680,890 $77,675 $6,738,615 $578,195 $3,704,156 $20,015,715
General ALLL to loans held-in-portfolio, excluding impaired loans [1] 1.65 %   0.48 %   3.81 %   1.28 %   1.13 %   3.84 %   1.88 %
Total ALLL $205,892 $3,444 $2,962 $128,841 $7,208 $167,877 $516,224
Total non-covered loans held-in-portfolio [1] $8,653,561 $690,728 $77,675 $7,189,227 $581,119 $3,820,620 $21,012,930
ALLL to loans held-in-portfolio [1] 2.38 %   0.50 %   3.81 %   1.79 %   1.24 %   4.39 %   2.46 %
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.
 
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of March 31, 2015 the general allowance on the covered loans amounted to $71.0 million, while the specific reserve amounted to $1.5 million.
 
[3] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.
 
Variance
(Dollars in thousands)   Commercial     Construction     Legacy     Mortgage     Lease financing     Consumer     Total  
Specific ALLL $(1,490 ) $567 $34 $1,592 $(80 ) $(577 ) $46
Impaired loans   $(79,800 )   $(6,211 )   $1,357     $5,222     $(370 )   $(1,587 )   $(81,389 )
General ALLL $11,318 $4,976 $319 $(486 ) $2,032 $(21,690 ) $(3,531 )
Loans held-in-portfolio, excluding impaired loans   $1,430,955     $11,493     $(6,530 )   $31,374     $12,067     $24,245     $1,503,604  
Total ALLL $9,828 $5,543 $353 $1,106 $1,952 $(22,267 ) $(3,485 )
Total non-covered loans held-in-portfolio   $1,351,155     $5,282     $(5,173 )   $36,596     $11,697     $22,658     $1,422,215  
 
           
Popular, Inc.
Financial Supplement to Second Quarter 2015 Earnings Release
Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS
(Unaudited)
 
30-Jun-15
Puerto Rico
(In thousands)   Commercial   Construction   Mortgage   Lease financing   Consumer   Total
Allowance for credit losses:
Specific ALLL non-covered loans $68,456 $725 $43,749 $607 $24,615 $138,152
General ALLL non-covered loans   138,639     5,833     82,428     8,553     109,095     344,548  
ALLL - non-covered loans   207,095     6,558     126,177     9,160     133,710     482,700  
Specific ALLL covered loans - - - - - -
General ALLL covered loans   -     -     37,815     -     259     38,074  
ALLL - covered loans   -     -     37,815     -     259     38,074  
Total ALLL   $207,095     $6,558     $163,992     $9,160     $133,969     $520,774  
Loans held-in-portfolio:
Impaired non-covered loans $337,577 $3,627 $450,789 $2,554 $112,733 $907,280
Non-covered loans held-in-portfolio, excluding impaired loans   7,231,433     109,819     5,793,594     590,262     3,282,292     17,007,400  
Non-covered loans held-in-portfolio   7,569,010     113,446     6,244,383     592,816     3,395,025     17,914,680  
Impaired covered loans - - - - - -
Covered loans held-in-portfolio, excluding impaired loans   3     -     671,074     -     18,573     689,650  
Covered loans held-in-portfolio   3     -     671,074     -     18,573     689,650  
Total loans held-in-portfolio   $7,569,013     $113,446     $6,915,457     $592,816     $3,413,598     $18,604,330  
 
 
31-Mar-15
Puerto Rico
(In thousands)   Commercial   Construction   Mortgage   Lease financing   Consumer   Total
Allowance for credit losses:
Specific ALLL non-covered loans $69,946 $158 $42,229 $687 $25,223 $138,243
General ALLL non-covered loans   125,520     1,437     84,350     6,521     128,205     346,033  
ALLL - non-covered loans   195,466     1,595     126,579     7,208     153,428     484,276  
Specific ALLL covered loans 1,473 - - - - 1,473
General ALLL covered loans   19,794     7,707     40,469     -     3,030     71,000  
ALLL - covered loans   21,267     7,707     40,469     -     3,030     72,473  
Total ALLL   $216,733     $9,302     $167,048     $7,208     $156,458     $556,749  
Loans held-in-portfolio:
Impaired non-covered loans $417,377 $9,838 $445,506 $2,924 $114,416 $990,061
Non-covered loans held-in-portfolio, excluding impaired loans   5,984,132     88,868     5,725,741     578,195     3,237,790     15,614,726  
Non-covered loans held-in-portfolio   6,401,509     98,706     6,171,247     581,119     3,352,206     16,604,787  
Impaired covered loans 8,394 2,336 - - - 10,730
Covered loans held-in-portfolio, excluding impaired loans   1,562,753     55,489     795,477     -     32,103     2,445,822  
Covered loans held-in-portfolio   1,571,147     57,825     795,477     -     32,103     2,456,552  
Total loans held-in-portfolio   $7,972,656     $156,531     $6,966,724     $581,119     $3,384,309     $19,061,339  
 
 
Variance
(In thousands)   Commercial   Construction   Mortgage   Lease financing   Consumer   Total
Allowance for credit losses:
Specific ALLL non-covered loans $(1,490 ) $567 $1,520 $(80 ) $(608 ) $(91 )
General ALLL non-covered loans   13,119     4,396     (1,922 )   2,032     (19,110 )   (1,485 )
ALLL - non-covered loans   11,629     4,963     (402 )   1,952     (19,718 )   (1,576 )
Specific ALLL covered loans (1,473 ) - - - - (1,473 )
General ALLL covered loans   (19,794 )   (7,707 )   (2,654 )   -     (2,771 )   (32,926 )
ALLL - covered loans   (21,267 )   (7,707 )   (2,654 )   -     (2,771 )   (34,399 )
Total ALLL   $(9,638 )   $(2,744 )   $(3,056 )   $1,952     $(22,489 )   $(35,975 )
Loans held-in-portfolio:
Impaired non-covered loans $(79,800 ) $(6,211 ) $5,283 $(370 ) $(1,683 ) $(82,781 )
Non-covered loans held-in-portfolio, excluding impaired loans   1,247,301     20,951     67,853     12,067     44,502     1,392,674  
Non-covered loans held-in-portfolio   1,167,501     14,740     73,136     11,697     42,819     1,309,893  
Impaired covered loans (8,394 ) (2,336 ) - - - (10,730 )
Covered loans held-in-portfolio, excluding impaired loans   (1,562,750 )   (55,489 )   (124,403 )   -     (13,530 )   (1,756,172 )
Covered loans held-in-portfolio   (1,571,144 )   (57,825 )   (124,403 )   -     (13,530 )   (1,766,902 )
Total loans held-in-portfolio   $(403,643 )   $(43,085 )   $(51,267 )   $11,697     $29,289     $(457,009 )
 
           
Popular, Inc.
Financial Supplement to Second Quarter 2015 Earnings Release
Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS
(Unaudited)
 
30-Jun-15
U.S. Mainland
(In thousands)   Commercial   Construction   Legacy   Mortgage   Consumer   Total
Allowance for credit losses:
Specific ALLL $- $- $34 $413 $412 $859
General ALLL   8,625     2,429     3,281     3,357     11,488     29,180  
Total ALLL   $8,625     $2,429     $3,315     $3,770     $11,900     $30,039  
Loans held-in-portfolio:
Impaired loans $- $- $1,357 $5,045 $2,144 $8,546
Loans held-in-portfolio, excluding impaired loans   2,435,706     582,564     71,145     976,395     446,109     4,511,919  
Total loans held-in-portfolio   $2,435,706     $582,564     $72,502     $981,440     $448,253     $4,520,465  
 
 
31-Mar-15
U.S. Mainland
(In thousands)   Commercial   Construction   Legacy   Mortgage   Consumer   Total
Allowance for credit losses:
Specific ALLL $- $- $- $341 $381 $722
General ALLL   10,426     1,849     2,962     1,921     14,068     31,226  
Total ALLL   $10,426     $1,849     $2,962     $2,262     $14,449     $31,948  
Loans held-in-portfolio:
Impaired loans $- $- $- $5,106 $2,048 $7,154
Loans held-in-portfolio, excluding impaired loans   2,252,052     592,022     77,675     1,012,874     466,366     4,400,989  
Total loans held-in-portfolio   $2,252,052     $592,022     $77,675     $1,017,980     $468,414     $4,408,143  
 
 
Variance
(In thousands)   Commercial   Construction   Legacy   Mortgage   Consumer   Total
Allowance for credit losses:
Specific ALLL $- $- $34 $72 $31 $137
General ALLL   (1,801 )   580     319     1,436     (2,580 )   (2,046 )
Total ALLL   $(1,801 )   $580     $353     $1,508     $(2,549 )   $(1,909 )
Loans held-in-portfolio:
Impaired loans $- $- $1,357 $(61 ) $96 $1,392
Loans held-in-portfolio, excluding impaired loans   183,654     (9,458 )   (6,530 )   (36,479 )   (20,257 )   110,930  
Total loans held-in-portfolio   $183,654     $(9,458 )   $(5,173 )   $(36,540 )   $(20,161 )   $112,322  
 
     
Popular, Inc.
Financial Supplement to Second Quarter 2015 Earnings Release
Table N - Reconciliation to GAAP Financial Measures
(Unaudited)
 
 
(In thousands, except share or per share information)   30-Jun-15   31-Mar-15   30-Jun-14
Total stockholders’ equity $4,949,653 $4,377,120 $4,260,441
Less: Preferred stock (50,160 ) (50,160 ) (50,160 )
Less: Goodwill (505,578 ) (508,310 ) (461,246 )
Less: Other intangibles   (72,735 )   (59,063 )   (40,122 )
Total tangible common equity   $4,321,180     $3,759,587     $3,708,913  
Total assets $36,750,113 $35,624,840 $36,587,902
Less: Goodwill (505,578 ) (508,310 ) (461,246 )
Less: Other intangibles   (72,735 )   (59,063 )   (40,122 )
Total tangible assets   $36,171,800     $35,057,467     $36,086,534  
Tangible common equity to tangible assets 11.95 % 10.72 % 10.28 %
Common shares outstanding at end of period 103,503,912 103,486,927 103,472,979
Tangible book value per common share   $41.75     $36.33     $35.84  
 
     
Popular, Inc.
Financial Supplement to Second Quarter 2015 Earnings Release
Table O - Financial Information - Westernbank Loans
(Unaudited)
 
 
Revenues
Quarters ended
(In thousands)   30-Jun-15   31-Mar-15   Variance
Interest income on covered loans   $55,335     $57,431     $(2,096 )
FDIC loss share income (expense):
Amortization of indemnification asset (31,065 ) (27,316 ) (3,749 )
80% mirror accounting on credit impairment losses [1] 7,647 8,246 (599 )
80% mirror accounting on reimbursable expenses 42,730 21,545 21,185

80% mirror accounting on recoveries on covered assets, including rental income on OREOs, subject to reimbursement to the FDIC

(5,203 ) (2,619 ) (2,584 )
Change in true-up payment obligation 3,672 4,164 (492 )
Other   1,293     119     1,174  
Total FDIC loss share income (expense)   19,074     4,139     14,935  
Total revenues   74,409     61,570     12,839  
Provision for loan losses   15,766     10,324     5,442  
Total revenues less provision for loan losses   $58,643     $51,246     $7,397  

[1] Reductions in expected cash flows for ASC 310-30 loans, which may impact the provision for loan losses, may consider reductions in both principal and interest cash flow expectations. The amount covered under the FDIC loss sharing agreements for interest not collected from borrowers is limited under the agreements (approximately 90 days); accordingly, these amounts are not subject fully to the 80% mirror accounting.

 
 
Non-personnel operating expenses
Quarters ended
(In thousands)   30-Jun-15   31-Mar-15   Variance
Professional fees $5,701 $3,225 $2,476
OREO expenses 34,262 13,823 20,439
Other operating expenses   10,125     2,461     7,664  
Total operating expenses   $50,088     $19,509     $30,579  
Expense reimbursements from the FDIC may be recorded with a time lag, since these are claimed upon the event of loss or charge-off of the loans which may occur in a subsequent period.
 
 
Quarterly average assets
Quarters ended
(In millions)   30-Jun-15   31-Mar-15   Variance
Loans $2,350 $2,540 $(190 )
FDIC loss share asset   391     429     (38 )
 
       
Activity in the carrying amount and accretable yield of loans accounted for under ASC 310-30
 
Quarters ended
    30-Jun-15   31-Mar-15
(In thousands)   Accretable yield   Carrying amount of loans   Accretable yield   Carrying amount of loans
Beginning balance $1,258,948 $2,367,096 $1,271,337 $2,444,172
Accretion (53,994 ) 53,994 (55,697 ) 55,697
Changes in expected cash flows 40,970 - 43,308 -
Collections / charge-offs   -     (284,012 )   -     (132,773 )
Ending balance 1,245,924 2,137,078 1,258,948 2,367,096
Allowance for loan losses - ASC 310-30 loans   -     (47,049 )   -     (68,386 )
Ending balance, net of allowance for loan losses   $1,245,924     $2,090,029     $1,258,948     $2,298,710  
 
The carrying amount of loans acquired from Westernbank and accounted for under ASC 310-30 which remain subject to the loss sharing agreement with the FDIC amounted to approximately $680 million as of June 30, 2015.
 
 
Activity in the carrying amount of the FDIC indemnity asset
 
Quarters ended
(In thousands)         30-Jun-15         31-Mar-15
Balance at beginning of period $409,844 $542,454
Amortization (31,065 ) (27,316 )
Credit impairment losses to be covered under loss sharing agreements 7,647 8,246
Reimbursable expenses to be covered under loss sharing agreements 42,730 21,545
Net payments from FDIC under loss sharing agreements (32,158 ) (132,265 )
Other adjustments attributable to FDIC loss sharing agreements         (4,051 )         (2,820 )
Balance at end of period        

$392,947

         

$409,844

 
 
 
Activity in the remaining FDIC loss share asset amortization
 
Quarters ended
(In thousands)         30-Jun-15         31-Mar-15
Balance at beginning of period $38,687 $53,095
Amortization (31,065 ) (27,316 )
Impact of lower projected losses         20,871           12,908  
Balance at end of period         $28,493           $38,687  
 
     
POPULAR, INC.
Financial Supplement to Second Quarter 2015 Earnings Release
Table P - Restructuring Charges
(Unaudited)
 
Restructuring Charges
Quarters ended
(In thousands)   30-Jun-15   31-Mar-15   Variance
 
Personnel costs $ 2,866 $ 9,366 $ (6,500 )
Net occupancy expenses 2,660 386 2,274
Equipment expenses 66 158 (92 )
Professional fees 315 466 (151 )
Other operating expenses     267     377     (110 )
Total restructuring costs   $ 6,174   $ 10,753   $ (4,579 )

Contact:

Popular, Inc.
Investor Relations:
Brett Scheiner, 212-417-6721
Investor Relations Officer
or
Media Relations:
Teruca Rullán, 787-281-5170
Mobile: 917-679-3596
Senior Vice President, Corporate Communications

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